All Forum Posts by: Marcello I.

I agree with @Theresa Harris. If you are nervous about making mistakes go with something low risk. I just closed on an Indy property in a solid B class neighborhood which needed very minimal rehab work. My primary residence/house hack in my home state was more of a BRRRR style deal but it was important to me that my first out of state investment property be lower risk to get my feet wet.

A lot of what you hear on these forums is buy low, buy a fixer upper, but there is no shame in buying something more turn key style to build experience out of state, as long as the numbers make sense.

Once my Indy property is leased and has stabilized I plan on using my established network in Indy to tackle a more BRRRR style deal using a mix of borrowed capital and some savings I had left over from my first deal. I think having a long term plan like this is key if you are going to go a more turn key route, since you will likely tie up a lot of your money in the first deal.

I’d also recommend developing a due diligence checklist that you can use during your deal analysis. This might take some of the anxiety out of the whole process and also streamline things to make you feel less overwhelmed.

I was basically in the same position as you a few months back and overcame my fear, developed systems to ease my anxieties and took the plunge. Feel free to message me if you have any other questions.

I just purchased an investment property in Indianapolis and my lender quoted several rates with varying point pay downs. I opted for a 25% downpayment paying 1.875 points at 4% even. The 20% downpayment ranged from 4.875 - 5.625 depending on points payed. I should note that these rates were quoted in October and I believe they have moved up a little. Another lender I spoke to during my interview process quoted similar rates.

@Shadow Grey I’ve been using Cozy.  The transfer time from Cozy to your checking can be a little lengthy but there is an option to expedite it for fee.

@Jessamyn Smith Welcome and congrats on having a clear plan ! That’s the first step. As a newbie out of state investor, I chose Indianapolis as my first market. I have done a lot of research on the city and surrounding areas and am currently working with a great team and am currently in contract on my first Indy property. Feel free to message me with any questions you may have.

@Jason Lee

Thank you for your response. I agree, I think my best bet is to consult with my attorney to garner a better understanding of this.

Hey BP ! I’m hoping to get some advice from BP members, especially BP members who operate in NY.

The girlfriend of a tenant in one of my units has effectively moved in and has a copy of the key that I did not authorize. My lease states that the unit is to be occupied by the tenant and the tenant only and that any requests for a copy of a key shall be submitted to me the landlord for approval.

Now here’s my dilemma... New York just passed the roommate law which effectively allows the tenants girlfriend to live in the unit with the tenant. However, the tenant previously agreed to our original terms which were agreed upon before the roommate law went into effect.

The real question here is, if my lease was agreed upon by both parties before this law went into effect, does it still hold up? And also, can a lease agreement be written more stringent than state law ?

@Charles Ngansop I’ve been using Cozy which is free. My only complaint with it is the free transfer to my checking is a little slow but other than that it has worked out well for me. There is an option to expedite a transfer for a small fee.

I had the same issue before I switched to an online payment platform which automatically applies a late fee after 5 days. Not sure what the laws are in your neck of the woods but I am in New York and my late fee aligns with state law.

I like that the online platform automatically applies the late fee because it makes it a little less personal than a text or verbal exchange.

Although my situation is a little different, I’ve had 3 offers fall through so far. A seller came back a month and a half later and asked if I was still interested at my previous offer price. It turned out that I was no longer interested, not because it wasn’t an ok deal, but because the neighborhood would have been the worst move for me (think nicest house in a C/D class neighborhood).

At the end of the day I’m really glad my initial offer fell through, because it gave me more time to do more research on the neighborhood and figure out that it would have been a bad situation for me. My main point is, that it wasn’t meant to be and hard work pays, even if the outcome wasn’t what you were initially shooting for.